Token

A digital asset built on top of an existing blockchain — combining access rights, fees, governance votes, or claims on future value.

A token is a digital asset issued on a blockchain, often on a host network like Ethereum or Solana. Unlike a coin (which powers its own chain), a token is a smart contract with rules: a use, a supply, sometimes votes.

Kinds of tokens

Utility tokens unlock a project’s services; governance tokens carry voting rights; security-like tokens are regulated investments; stablecoins and NFTs are tokens too. Most are created via a standard like ERC-20.

Why token design matters

A token’s emission schedule, lockups, and distribution decide how decentralized — and how honest — its market is. Analysts read tokenomics as the incentive blueprint of an entire ecosystem.

Related terms

Cryptocurrency, Governance Token, Airdrop, Smart Contract, Stablecoin